DECEMBER 2018 Business 37
A
SK Mark Sykes for his
opinion on whether
the public or the
private sector is
leading the tech
innovation charge and
his answer is
characteristically measured.
“I do believe that the tech revolution
is impacting on the day-to-day way that
all businesses and public bodies
operate,” he explained.
“But it’s not easy to give a definitive
answer to who precisely is leading the
innovation charge as the answer is a
little more complex.”
Sykes is a partner at accountants and
auditors BDO as well as being head of
BDODrive in the North West.
BDODrive was established by the
firm to transform the delivery of
accounting services through the use of
the latest cutting-edge technology.
Sykes, pictured, said: “In essence, the
private sector has three main strands
radically changing the way companies
do business.
“First, is open application
programming interface (API) which
allows small businesses to adapt
quickly and become more agile than
their larger cousins.
“Historically, software was built in
such a way that if you needed
something extra you had to go back to
the developers who would programme
a solution at a heavy cost.
“However, with the shift to apps
through organisations like Apple and
Xero, a culture shift happened and
developers welcomed other app
developers to build solutions to plug
into their software.
“This has led to many private
companies innovating to find better
ways of doing business.
“The second is online retail which
has broken down international
barriers.
“Now, new businesses recognise that
online platforms and social media can
reach directly into homes anywhere in
the world and therefore a business can
grow from start-up to global in a year.
“The final change really benefiting
the private sector is about to happen
and that’s open banking.
“That will suddenly take financial
services away from the establishment
and create a new breed of fintech
disruptors – payments cleared in
seconds, intelligence on spending
patterns and new ways of connecting
business globally.”
Sykes asserted that these changes are
resulting in “agility, speed and a can-do
attitude” among small businesses in
particular.
He continued: “By contrast, the
public sector has a slightly different
approach to innovation, with much
more focus on big data and how that
can be used to drive efficiency and
streamline processes.
“Probably leading the way is HMRC
with its Making Tax Digital initiative.
“The first state of this will go live in
April next year when VAT returns will
need to be submitted online.
“What is particularly impressive is
that a department of such a large size is
able to build a clear strategic vision and
drive it in innovative ways.
“Innovation in the public sector is
more focused on productivity and
intelligence gathering to detect and
prevent fraud, ultimately driving
efficiency.”
Sykes maintains that both the public
and the private sector can clearly
demonstrate ground-breaking
innovation.
He added: “There are also many
joined-up initiatives since public sector
changes create changes to the private
sector which result in further
innovation to join the gaps.
“The challenge, however, is not
private versus public since the reality is
big government and small businesses
alike have demonstrated fresh and
innovative thinking.
“The challenge sits in the middle –
among local authorities and smaller
government departments as well as
larger corporates.
“These organisations are of such
scale that systemic changes are hard
and they’ve not yet felt the urgency of
change.“Big businesses need to avoid
complacency and learn from the
start-ups in terms of trying new ideas,
while also learning from the public
sector on how to drive an effective
change programme.“Local authorities likewise should
look at the agile ways of working
coming from newer technologies
which could improve how customer
services are delivered while also
improving connectivity across teams.”Public and private sectors
can help make tech better
Myriad benefits are there to be enjoyed
when the public and private sector share
best tech practice, as Ben Rooth discovers
TECHNOLOGY IN ASSOCIATION WITH